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50 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

CHAIRMAN’S

ADDRESS

Navigating Through Volatility

MSM maintained a steady footing through a year of increasing costs and
operational disruptions by committing to business and sustainability plans,
firming up stakeholder relationships and taking quick action to overcome hurdles.
MSM HAS Staying responsive instead of reactive, MSM made the following prudent and
decisive actions to address the year’s challenges:
MANAGED

TO HEDGE A Mitigating Rising Raw Sugar NY11 and Freight Costs

SIGNIFICANT With NY11 prices trending higher and freight costs on the rise, MSM continues
to hedge NY11 towards budget. By securing lower hedged pricing and offsetting
PORTION OF ITS increased costs on these vital resources, MSM is able to secure good refining margin.

WHOLESALE MSM naturally hedges all Industry and Export volumes with a back-to-back
pricing mechanism on top of raw sugar cost. While raw sugar supply shortages will
REQUIREMENT result in raw sugar price increase, MSM has managed to hedge a significant portion
of its Wholesale requirement in FY2022 below market price. The Group will continue
IN FY2022 BELOW hedging the rising cost cautiously to sustain against this challenging inflationary
period.
MARKET PRICE.

THE GROUP

WILL CONTINUE

HEDGING THE

RISING COST

CAUTIOUSLY

TO SUSTAIN

AGAINST THIS

CHALLENGING

INFLATIONARY

PERIOD.